State-Owned Enterprises Deliver Strong Q1 Results with MVR 13.29 Billion in Revenue

State-owned enterprises (SoEs) and companies with government stakes generated a combined revenue of MVR 13.29 billion in the first quarter of 2025, with 15 companies posting a cumulative net profit of MVR 2.05 billion, according to financial statements released by the Privatization and Corporatization Board (PCB).

The PCB reported that while 12 SoEs recorded losses amounting to MVR 281 million during the quarter, the sector as a whole achieved an overall net profit of MVR 1.76 billion. The board noted that many of the loss-making entities are those mandated to provide essential public services at affordable prices, reflecting policy-driven operations rather than purely commercial objectives.

Despite a nine percent decline in revenue compared to the first quarter of last year, the sector’s net profit increased by ten percent. The PCB attributed this improvement to tighter cost controls, strengthened operational efficiency and more effective corporate expense management, which helped offset the impact of lower revenues.

Among the SoEs, State Trading Organization (STO) recorded the highest revenue in the first quarter, reaching MVR 4.02 billion. Maldives Islamic Bank (MIB) registered the strongest revenue growth, with a 42 percent increase compared to the same period last year. In terms of profitability, Maldives Airports Company Limited (MACL) posted the highest net profit at MVR 572 million, while Road Development Corporation (RDC) reported the largest loss of MVR 113 million.

Housing Development Corporation (HDC) emerged as the strongest performer in profit growth, recording a 190 percent increase year-on-year to MVR 268.49 million. The PCB clarified that HDC’s loss figure in its 2024 sector report was based on provisional data submitted before the completion of audits. Following the finalization of the 2023 audit and subsequent developments affecting 2024 figures, the PCB now projects that HDC will record a profit when its 2024 financial statements are reviewed.

The PCB also highlighted improvements in the sector’s balance sheet. As of the first quarter of 2025, total asset value across SoEs and companies with government stakes reached MVR 205.24 billion, marking a ten percent increase compared to the same period last year. Over the same period, total debt rose by seven percent, with asset growth outpacing debt expansion, indicating a reduced reliance on borrowing for growth.

On liquidity and leverage, the PCB reported that excluding financial sector entities, 60 percent of companies maintained their current ratios at optimal levels during the quarter. Similarly, 60 percent were found to be managing operations without excessive dependence on debt, either through prudent financing structures or by keeping debt at low, manageable levels. Notably, 25 percent of SoEs were reported to have no debt at all, underscoring improved financial resilience across parts of the sector.